It is likely that the relationship between actions and cryptographic markets weakens in the future, said Wall Street Bank Citi (C) in a research report on Monday.
Although the actions have been and continue to be the most important macro driver of cryptographic markets, the “capital-Christ correlation is likely to fall over time as the nascent class of mature assets, the base of investors grows, Technological advances and adoption progress, “says the report.
Even so, the speculative nature of cryptocurrency markets means that correlations of risk assets can be inflated, especially during risk events, the bank said.
“A more transparent regulatory regime in the United States will also lead to a more idiosyncratic price action,” wrote analysts led by Alex Saunders.
Bitcoin’s volatility (BTC) is expected to continue falling in the long term as institutional adoption grows, said the bank.
Citi said Crypto was the only kind of assets whose market capitalization, as a percentage of US actions, grew during the past year.
It is also worth tracking Bitcoin’s correlation with Gold, since it can be an early sign of the “value use of value of value,” the report added.
Read more: Bitcoin’s perspective is optimistic, since prices are expected to remain high: Deutsche Bank
